US Dollar Boosted by Reports About US-China Nearing Consensus on Phase One Trade Deal
The US dollar is trading strong early on Tuesday as a result of positive tones in the market hinting at the possibility of an interim US-China trade deal being signed soon. At the time of writing, the US dollar index DXY is trading at around 98.32.
Against the Japanese yen, the US dollar has soared to a one-week high as the risk-on sentiment wanes, diminishing the safe haven appeal of the yen. USD/JPY has climbed 0.29% higher on rising hopes for the US and China to head towards a partial resolution of the trade war.
The mood in the markets was lifted after China gave assurances over the weekend that it would impose higher fines for violation of IP protection. The issues of IP protection and forced technology transfers were among the core concerns that started the trade war in the first place, and any positive step from China towards resolving this is sure to vastly improve its trade relationship with the US.
A recent tweet put out by Chinese daily Global Times also supports expectations for the signing of the trade deal soon. Global Times stated that the Chinese government “remains committed to continuing talks for a phase two and even a phase three deal”, with experts revealing that both sides were close to reaching a broad consensus on the phase one trade deal.
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